Celebal Technologies Revenue Growth and Financial Overview

Celebal Technologies, a prominent IT services provider, has proudly surpassed the Rs 270 crore revenue threshold, achieving a remarkable 43% year-on-year growth for the fiscal year concluding in March 2024. Despite this revenue growth, the company, backed by Norwest Ventures, experienced an increase in losses, which surged to Rs 60 crore during the same time frame. According to consolidated financial statements acquired from the Registrar of Companies (RoC), Celebal Technologies reported that its revenue from operations rose to Rs 275 crore in FY24, up from Rs 192 crore in FY23.

Company Background and Specialisation

Founded in 2016 by Anupam Gupta and Anirudh Kala, Celebal Technologies focuses on data science, artificial intelligence, and enterprise cloud solutions. The Jaipur-based firm relies heavily on technology consulting as its main revenue source. They also recorded Rs 6 crore from interest and the disposal of current investments, leading to a total revenue of Rs 281 crore in FY24. Expanding its reach into international markets, the firm generated Rs 122 crore from operations abroad, including the USA, APAC, UAE, Europe, and Canada.

Expenditure Breakdown and Financial Challenges

Similar to other Software as a Service (SaaS) companies, employee benefits represent the most significant cost area for Celebal Technologies, accounting for 71% of total expenditures. This expense saw a significant increase of 87%, climbing to Rs 245 crore in FY24 compared to Rs 131 crore in FY23. Notably, the company employs a dedicated team of over 2,000 professionals.

Key overhead costs, including technical services, rent, travel, advertising, and legal fees, contributed to the overall rise in total expenses, which escalated by 73% from Rs 199 crore in FY23 to Rs 344 crore in FY24. For a more detailed breakdown of expenses, various sources may be consulted.

The 87% jump in employee benefits, primarily related to salaries and wages, outpaced revenue growth, resulting in Celebal Technologies’ losses expanding to Rs 60 crore in FY24 from just Rs 1 crore in FY23. At an operational level, the company reported spending Rs 1.25 for every rupee earned, with its Return on Capital Employed (ROCE) and EBITDA margins falling to -39.1% and -19.2%, respectively. By the conclusion of FY24, total current assets were reported at Rs 139 crore, including cash and bank balances amounting to Rs 18 crore.

Investment and Ownership Structure

In 2022, Celebal Technologies successfully secured its inaugural institutional funding of $32 million, led by Norwest Venture Partners. The company subsequently raised additional debt financing from BlackSoil. Startup data intelligence platforms indicate that Norwest holds the most substantial external stake at 19.58%, while the two co-founders together maintain ownership of over 70% of the company’s equity.